Sugar stocks extend gains: What’s driving the rally?
The rally was triggered last week when the government tightened stock-holding limits for bulk consumers such as bakeries, beverage makers and food processing companies to a maximum of 15 days' inventory, effective September 1, 2026.
- Aug 24, 2026,
- Updated Aug 24, 2026 1:43 PM IST
Sugar stocks extended gains for the third straight session on Dalal Street, with shares of major sugar companies rising as tight supply, firm sugar prices and a recent government policy move lifted investor sentiment.
Concerns over the 2026-27 sugarcane crop have added to the positive sentiment, with patchy monsoon rainfall in some key sugar-producing regions raising questions over cane availability and crop output.
Meanwhile, strong festival-led demand has pushed sugar prices higher, with prices touching record levels.
This is a strong tailwind for millers such as Kothari Sugars, which surged 16 per cent to Rs 38.6. Dwarikesh Sugar added 9 per cent to Rs 58.45. Sakhti Sugars was up 8 per cent to Rs 22.80.
The rally was triggered last week when the government tightened stock-holding limits for bulk consumers such as bakeries, beverage makers and food processing companies to a maximum of 15 days' inventory, effective September 1, 2026.
Traders and investors read the planned move as a confirmation of tightening supply and raised stock prices.
India’s need for blending petrol with Ethanol, a cane by-product, has also diverted the crop towards factories producing ethanol rather than sugar, further tightening dwindling supplies.
The nation of over 1.4 billion people also kickstarts its six-month festival session in the first week of September, when demand for the sweetener rises sharply.
Sugar stocks extended gains for the third straight session on Dalal Street, with shares of major sugar companies rising as tight supply, firm sugar prices and a recent government policy move lifted investor sentiment.
Concerns over the 2026-27 sugarcane crop have added to the positive sentiment, with patchy monsoon rainfall in some key sugar-producing regions raising questions over cane availability and crop output.
Meanwhile, strong festival-led demand has pushed sugar prices higher, with prices touching record levels.
This is a strong tailwind for millers such as Kothari Sugars, which surged 16 per cent to Rs 38.6. Dwarikesh Sugar added 9 per cent to Rs 58.45. Sakhti Sugars was up 8 per cent to Rs 22.80.
The rally was triggered last week when the government tightened stock-holding limits for bulk consumers such as bakeries, beverage makers and food processing companies to a maximum of 15 days' inventory, effective September 1, 2026.
Traders and investors read the planned move as a confirmation of tightening supply and raised stock prices.
India’s need for blending petrol with Ethanol, a cane by-product, has also diverted the crop towards factories producing ethanol rather than sugar, further tightening dwindling supplies.
The nation of over 1.4 billion people also kickstarts its six-month festival session in the first week of September, when demand for the sweetener rises sharply.